Museveni Commissions Shs380 Billion Ethanol Plant in Luweero
By The Urban Gazette Business Desk
Luweero District
President Yoweri Museveni has commissioned a Shs380 billion ethanol and extra-neutral alcohol manufacturing plant in Luweero District, a move officials say will strengthen Uganda’s industrial capacity and reduce reliance on imports.
The plant is designed to produce fuel-grade ethanol for petrol blending, as well as industrial and pharmaceutical alcohol for domestic consumption and export. It will source raw materials primarily from local sugarcane farmers, creating new markets and employment opportunities.
Speaking at the ceremony, President Museveni emphasized the importance of value addition and industrialization, noting that Uganda must process its raw materials locally to achieve long-term economic stability.
Government officials estimate the plant will create hundreds of direct jobs and thousands of indirect ones across agriculture, transport, and logistics sectors.
Why It Matters
Domestic ethanol production can reduce fuel import costs, support rural farmers, and stabilize energy prices. The project aligns with Uganda’s industrialization strategy and efforts to diversify the economy.
What to Watch
Changes in fuel blending and pricing
Farmer participation in supply chains
Environmental compliance and sustainability measures
